Some good news at last
You may recall HMRC’s proposals to restrict relief against income tax for individuals in certain circumstances with regard to, among other things, losses and interest relief. I am pleased to say that, following a consultation, the government has changed its mind!
The responses to the consultation pointed out that HMRC already has provisions to restrict relief for losses for non-active partners and is also in the process of setting up a general anti-abuse law. It was felt that this should be sufficient to manage any perceived abuse in terms of income tax reliefs.
The government has now agreed that it will not introduce the new legislation in April 2013 as originally intended. Instead, it has agreed that HMRC can monitor the efficacy of the current protections before deciding whether or not any further action is needed against avoidance for income tax losses.
Date: 24th August, 2012
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